The Bank of Canada left interest rates unchanged at 1.25 per cent Wednesday, but hinted future rate increases could be coming.

The central bank said in its announcement that Canada’s continued economic growth “further” reinforces the view that higher interest rates will be warranted to keep inflation near its target.

Here’s how economists are reacting to the Bank of Canada’s decision.

“Governor Poloz didn't pull the trigger today, but the central bank did hint that the time could be nigh for another rate hike in Canada … As the bank contends with trade uncertainties, competitiveness issues, and a shaky housing market we're sticking to our forecast that Governor Poloz moves once more in July before taking an extended break.”

- Royce Mendes, director and senior economist, CIBC Economics

“No surprise here. With the economy set to outperform the Bank's earlier expectations (Q1 GDP data is released tomorrow morning) and signs of life in all sectors bar housing, economic conditions favour another interest rate hike. While we may need a grammarian to distinguish between ‘cautious’ and ‘gradual,’ the message was nevertheless clear: get ready for another rate hike.”

- Brian DePratto, senior economist, TD Economics

“Get ready for a July rate hike …That’s pretty strong language from a central bank that doesn’t tend to tell us what they’re going to do next. Poloz is not a fan of forward guidance.”

- Frances Donald, senior economist, Manulife Asset Management

"We didn’t pick up on this first, but the bank’s comment on M&E [machinery and equipment] imports implies upside to investment spending projections going forward. That’s key given capacity constraints and trade uncertainty have contributed to an uncertain outlook so far. BoC Deputy Governor Sylvan Leduc’s speech tomorrow should shed some more light on this."

- Bipan Rai, North America head of FX Strategy, CIBC Capital Markets